Kenya will inject an extra $40 million (Sh5.2 billion) into the African Trade and Investment Development Insurance (ATIDI), more than doubling its stake in the quest for greater influence in mobilising billions of shillings for critical projects.
The additional investment will raise Kenya's capital subscription in the African guarantee platform from $25 million (Sh3.2 billion) to $65 million (Sh8.4 billion), President William Ruto announced on Tuesday.
“We thank ATIDI for supporting Kenya's development journey by over $7 billion in investments in energy, transport, manufacturing, agriculture, and trade sectors,” President Ruto said in a post the X social media platform.
“To deepen that partnership, Kenya will progressively increase shareholding in ATIDI from $25 million to $65 million as we strengthen the continent's financial institutions to fund the future.”
The move strengthens Kenya's position in one of Africa's fastest-growing multilateral financial institutions as governments increasingly turn to regional lenders and insurers to finance development amid tighter global credit markets.
ATIDI insures investors and lenders against political, sovereign and commercial risks that often discourage financing for projects across African countries.
The guarantees reduce investment risks, allowing banks, insurers and development finance institutions to lend more confidently to businesses and governments undertaking large projects.
The role has become increasingly important as African economies grapple with rising borrowing costs, tighter international financial conditions, as well as reduced appetite for lending to emerging markets. Since its establishment in 2001, ATIDI has supported trade and investment transactions worth more than Sh1.2 trillion ($93 billion) across Africa.
Kenya has emerged as one of the institution’s biggest beneficiaries since joining the institution more than two decades ago.
Beyond buying additional shares in the organisation, Kenya’s increased investment also secures the country greater influence in a body playing an increasingly central role in determining how investment risks across Africa are assessed and financed.
The announcement comes as ATIDI itself expands rapidly through fresh capital injections from governments and international development finance institutions.
Last month, the African Development Bank approved a $125 million (Sh16.2 billion) equity investment to strengthen the institution's balance sheet and expand its capacity to support investments across member countries.
Germany's development bank KfW has also invested fresh capital as ATIDI broadens its shareholder base and underwriting capacity.
The additional capital enables the institution to guarantee larger transactions while supporting more investment projects across African economies.
It also reflects Nairobi's growing ambition to position itself as a leading financial hub for African investment.
